US start-up Frich Money enters pilot partnership with MSU Federal Credit Union
US-based social finance app Frich Money, which aims to help credit unions attract and retain younger members, has entered into a pilot partnership with Michigan State University Federal Credit Union (MSUFCU).
Frich Money enters pilot partnership with MSUFCU
The New York-headquartered fintech has been selected to be a part of Michigan State University Research Foundation’s Conquer Finance and Insurance Accelerator, supported by MSUFCU.
The programme contains a group of Michigan-based finance and insurance start-ups including Newzip, Approva, Ascent and ScribeUp, who will all be offered networking opportunities, funding, and mentorship.
Launched in 2021, Frich Money provides a financial wellness app designed to help Gen Z users “make informed decisions about money quickly and confidently”.
Frich Money CEO and co-founder Katrin Kaurov writes on LinkedIn that the new partnership with MSUFCU will enable the credit union to help “better serve the next generation of members”.
MSUFCU believes Frich Money can help bridge the “awareness gap” between Gen Z and credit unions.
Both enterprises are aligned in their ambitions to grow Gen Z participation in the space, with only 4% of the Gen Z demographic currently utilising credit unions today, according to MSU Federal Credit Union CIO Benjamin Maxim.
“The average age of most credit union member bases is north of 50 years old, which is leading many in the industry to realise that member succession planning by attracting younger members is imperative for the survival of their credit unions”, explains Maxim.
“Only 4% of Gen Z currently utilise credit unions today, the fact that their deposits are estimated to be a combined $10 trillion by 2030 as a generational cohort should be motivation to find solutions to attract and retain younger members as they progress through their life stages.”
